Cytori Licenses Asia-Pacific Cardiovascular, Renal & Diabetes Markets
to Lorem Vascular for up to $531 Million

Cytori to Receive $31 Million Upfront in Equity and Initial
Purchase Commitments

November 04, 2013 04:29 PM Eastern Standard Time

SAN DIEGO & HONG KONG & BEIJING & MELBOURNE--(BUSINESS WIRE)--Cytori
Therapeutics (NASDAQ: CYTX) and Lorem Vascular today announced a
partnership to commercialize Cytori Cell Therapy for the cardiovascular,
renal and diabetes markets in China, Hong Kong, Malaysia, Singapore and
Australia. Under the agreement, Lorem Vascular committed to pay up to
$531 million in license fees, opening product purchase commitments and
Cytori equity purchases. Cytori
Cell Therapy is derived from the Company’s Celution® System, which
enables access to a patient’s own adipose-derived regenerative cells
(ADRCs) at the point-of-care.

Lorem Vascular will pay up to $500 million in fees for a 30-year
exclusive license to Cytori Cell Therapy for all indications, excepting
alopecia and aesthetics, in the licensed territories in the form of
revenue milestones. In addition, Lorem Vascular agrees to purchase the
Cytori Celution® System and consumables under a product supply
agreement. Cytori will receive $24 million in exchange for 8 million
shares of Cytori common stock at $3.00 per share. Equity purchased will
be closed in two installments; a $12 million payment that will be paid
within 7 days and a second $12 million payment that will be made within
60 days. In addition, Lorem Vascular will order $7 million in Celution®
devices and consumables with a $2 million order placed immediately and a
$5 million order to be placed following regulatory approval in China.
Lorem and Cytori have implemented a regulatory plan in China and
anticipate approval in 2014. One board seat will be granted to Mr. K.T.
Lim, Chairman of Lorem Vascular.

“Cytori Cell Therapy will transform the way healthcare addresses the
most costly and insidious diseases impacting healthcare today and well
into the future,” said Mr. K.T. Lim. “This therapy represents a
front-line treatment modality that will serve as the centerpiece of our
cardiovascular, renal and diabetes commercial activities across the
region. Lorem Vascular will initiate an immediate launch in Hong Kong,
Singapore and Australia. A subsequent launch in China and Malaysia is
planned in 2014, pending regulatory approvals.”

“Through this agreement with Lorem Vascular, we have secured a committed
partner to bring Cytori Cell Therapy to patients in countries where we
have recently received, or are in the process of achieving, regulatory
approval,” said Christopher J. Calhoun, Chief Executive Officer of
Cytori. “With the Celution® System now approved and available in more
than 40 countries, we are uniquely positioned to expand our cell therapy
brand by being first-to-market with cell therapy products in new
geographies around the world. Lorem Vascular brings to Cytori the
required resources, market knowledge, dedication and focus to
commercialize this innovative treatment and pioneer the introduction of
cell therapy products for patients with the most serious conditions.”

More than 230 million Chinese have a form of Cardiovascular Disease
(CVD) which is the country’s leading cause of death, accounting for more
than 40% of all deaths, or three million people per year. This
translates to one death every ten seconds from CVD in China. According
to recent estimates, due to population growth and aging, the number of
annual CVD events in China is projected to increase by more than 50%
during the next decade and a half. The growing worldwide prevalence of
diabetes is one of the contributing factors to increasing rates of
vascular diseases, as they are common co-morbidities of diabetes.

“Expanding in emerging markets throughout the world is critical to our
mission and growth and partnerships such as this are a key driver of our
approach,” said David Oxley, Vice President for Emerging Markets at
Cytori. “China is one of the three largest and highest value medical
markets in the world. A market penetration of less than 5% of the
cardiovascular market alone represents millions of patients treated in
the next thirty years, a multiple of billions in cost savings to the
People’s Republic of China, and a transformation in the quality and
standard of care. Today’s announcement with Lorem Vascular marks the
beginning of an important partnership in transforming healthcare and
will create long-term shareholder value.”

About Cytori Cell Therapy and the Celution® System

Cytori Cell Therapy is derived from the Company’s Celution® System, an
innovative and proprietary medical device that enables access to a
patient’s own adipose (fat tissue)-derived regenerative cells at the
point-of-care for a range of injuries and conditions. Adipose tissue is
considered the richest source of regenerative cells in the body. These
cells are comprised of a heterogeneous population of cells, which are
collectively referred to as ADRCs. The heterogeneous nature of Cytori
Cell Therapy and ADRCs are believed to contribute to the healing process
via multiple mechanisms, which include cell-to-cell signaling,
supporting improved blood flow and regulation of the inflammatory
response.

About Cytori

Cytori Therapeutics is developing cell therapies based on autologous
adipose-derived regenerative cells (ADRCs) to treat cardiovascular
disease and other medical conditions. Our scientific data suggest ADRCs
improve blood flow, moderate the inflammatory response and keep tissue
at risk of dying alive. As a result, we believe these cells can be
applied across multiple “ischemic” conditions. These therapies are made
available to the physician and patient at the point-of-care by Cytori’s
proprietary technologies and products, including the Celution System
product family. www.cytori.com

About Lorem Vascular

Lorem Vascular will be a leader in cardiovascular care with world-class
regenerative medicine therapy. Headquartered in Beijing, with offices in
Hong Kong, Kuala Lumpur, Singapore, and Melbourne, Lorem Vascular is
committed to advancing patient care by transforming the treatment of
cardiovascular disease by providing access to innovative medical
technology to facilitate regenerative medicine, hospital and physician
training and continuing medical education. The Company offers a
cutting-edge regenerative medicine platform for treating such things as
peripheral vascular disease, acute myocardial infarction and chronic
heart disease. Our flagship platform is the market-leading Celution®
System developed by Cytori Therapeutics (USA). www.loremvascular.com

Cautionary Statement Regarding Forward-Looking Statements

This communication includes forward-looking statements regarding events,
trends and business prospects, which may affect our future operating
results and financial position. Such statements, including, but not
limited to, those regarding our ability to obtain regulatory approvals
in China and other countries in the specified timeframe, and Lorem
Vascular’s ability to successfully launch the Celution® platform in
China, Hong Kong, Malaysia, Singapore and Australia in the timeframes
indicated are subject to risks and uncertainties that could cause our
actual results and financial position to differ materially. Some of
these risks and uncertainties include the challenges inherent in Lorem
Vascular convincing physicians and patients to adopt the new technology,
regulatory uncertainties, dependence on third party performance, and
other risks and uncertainties described under the "Risk Factors" section
in Cytori's Securities and Exchange Commission Filings on Form 10-K and
Form 10-Q. Cytori assumes no responsibility to update or revise any
forward-looking statements contained in this press release to reflect
events, trends or circumstances after the date of this press release.